Ethereum Beats Bitcoin to Become the Largest Network for Trustless Money Settlement
But average transaction fees on the second-largest cryptocurrency by marketcap are crippling the network
Last week, ETH’s adjusted transfer value reached its highest level ever, above $19 billion.
As Ryan Watkins of Messari noted, “The only financial metric left for Ethereum to surpass Bitcoin on may be market capitalization.” While stability, longevity, and institutional adoption has been going for the largest network, Watkins questioned,
“will that be enough to keep the lead on ETH with every single metric outpacing Bitcoin?”
Ethereum is now settling more value in ETH than Bitcoin is settling in BTC. Ethereum is now the largest network for trustless money settlement.
They say reserve currency status is the last to fall when an economic power gets outcompeted.
1 flippening left. pic.twitter.com/W0Wq65Da25
— Ryan Sean Adams – rsa.eth 🏴 (@RyanSAdams) February 9, 2021
The median transfer value has also risen to an average of about $312, higher than September 2020’s peak of $268. While it’s still well below the all-time highs of January 2018, the network hasn’t seen the median transfer value this high in years.
This new all-time high in transfer value is the result of a huge surge in the amount transferred via Ethereum smart contracts. This surge could also be exaggerated due to a recent exploit in Yearn Finance. However, despite this, transfer value remained high throughout.
Besides on-chain transfer value, the second-largest network is also beating Bitcoin’s gains, much like always.
Compared to $859 billion, Bitcoin’s about 60% gains YTD, Ether, which has a market cap of over $200 billion, has recorded more than 145% gains during the same period.
This week Bitcoin made a new ATH above $48,000 on the back of Tesla, an $805 billion-dollar company, announcing the purchase of $1.5 billion worth of BTC.
“It appears that Elon Musk and Tesla just opened the floodgates even wider, and we’re seeing price react very bullishly,” noted Hxro Labs. As for Ether, $2,000 is “no longer just “Moonboy talk”’ as the digital currency enjoys an uptrend above $1,800 after surviving the CME futures launch.
In line with the top cryptos, altcoins have been having a blast since last week, with the likes of MATIC, ADA, and BNB shining this week. As for DeFi perps, it enjoyed its strongest week ever with insane volumes, and as per HXRO Labs, it
“shows no signs of slowing down, however, ETH fees have crippled much of the network, pricing out a large portion of users for now.”
Thanks to crazy high fees, Ethereum miners are raking in huge amounts of revenue. Their mining revenue increased by 54.7% for an average of $45.7 million per day compared to Bitcoin’s $40.4 million, which increased 20.3% week-over-week.